tag:blogger.com,1999:blog-6587699706949333863.post7405362332693166488..comments2019-02-17T19:42:15.086-06:00Comments on Passive Income Pursuit: Freedom Buy 2019Passive IncomePursuitnoreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6587699706949333863.post-91814277984435471232019-02-05T08:23:27.606-06:002019-02-05T08:23:27.606-06:00Financial Shaper,
There&#39;s a lot going on wit...Financial Shaper, <br /><br />There&#39;s a lot going on with Altria other than the core tobacco business which has great economics by itself. But their secondary investments are the real kicker here. Like you I don&#39;t think the Juul investment was the best use of capital. There&#39;s a reason that Juul&#39;s management required Altria to pay a valuation much more than the previous investment valued the business at. They either don&#39;t feel like they need Altria&#39;s distribution channels or felt that they could extract some more cash from them because of Altria&#39;s growth struggles.Passive IncomePursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-16856615178476483662019-02-04T09:05:45.660-06:002019-02-04T09:05:45.660-06:00Hi PiP
I like your acquisition. Altria is a great...Hi PiP <br />I like your acquisition. Altria is a great company with very strong financials and top brands. I also like their holding in the beer sector AB Inbev. Philipp Morris and British American Tobacco might have more growth opportunities due to their massive geographic diversification but the US is one of the most attractive markets, high margins are a major advantage of Altria. <br />Altria&#39;s acquisition of Juul, especially at that high price had me hesitate to pull the trigger. I have the feeling that they severely overpaid , that cash could have been invested in a much more sensible way in my view. But either way, Altria at these price level is very attractive. <br />Cheers Financial Shaperhttps://www.blogger.com/profile/07736333603530078870noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-78958414056710589272019-01-31T09:55:04.378-06:002019-01-31T09:55:04.378-06:00R2R,
More sellers than buyers is the obvious ans...R2R, <br /><br />More sellers than buyers is the obvious answer here.<br /><br />In reality probably concerns about rate hikes, their large debt levels, investment in JUUL which was at a significant premium to the last investment that was made into JUUL as well as potential lawsuits/regulation of JUUL (vaping). General market malaise?<br /><br />They recently bought a stake in CRON as well. Passive IncomePursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-33429402130743038502019-01-31T09:37:10.530-06:002019-01-31T09:37:10.530-06:00I hear you that its not going to go bankrupt with ...I hear you that its not going to go bankrupt with lawsuits...they will survive, perhaps even thrive.<br /><br />What was the reason for big drop from Nov to Jan? Sorry, I havent followed the news too closely regarding MO.Roadmap2Retirehttps://www.blogger.com/profile/14379818667071736766noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-65618603008955911532019-01-31T09:04:01.209-06:002019-01-31T09:04:01.209-06:00R2R,
The demise of big tobacco has been going on ...R2R,<br /><br />The demise of big tobacco has been going on for 50+ years. Law suits are always an potential issue, but then again they&#39;ve been an issue in the past. I don&#39;t think the US government will do anything to overly burden MO or other big tobacco companies because it&#39;s a cash cow for tax revenues for them between corporate profits as well as the &quot;sin&quot; tax.<br /><br />PM does have more growth opportunities than MO and should benefit greatly from a declining dollar. But my PM position is about 2.5-3x my MO position even after the purchase of MO here. From a value perspective MO is trading cheaper than PM right now too.<br /><br />Thanks for stopping by!Passive IncomePursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-85219357498936086452019-01-31T08:47:36.662-06:002019-01-31T08:47:36.662-06:00MO seems to be a popular one with the DGI communit...MO seems to be a popular one with the DGI community these days. Not a company I follow closely but maybe I should take a second look. I am just a bit nervous of potential lawsuits and as a reason have always stayed away from tobacco company.<br /><br />How does PM compare to MO, from a valuation and market reach perspective lately? Doesnt PM give you a better growth profile with international markets?<br /><br />R2RRoadmap2Retirehttps://www.blogger.com/profile/14379818667071736766noreply@blogger.com